Developed by Israeli start-up Waze Mobile, Waze is a free social GPS app that has turn-by-turn navigation to help drivers avoid traffic. It's also a community-driven application that draws information from drivers ahead of you, and even learns from users' driving times to provide routing and real-time traffic updates.

Google has now acquired Waze for $1.3 billion and plans to integrate its traffic reports into Google Maps. Google will also allow Waze to use its search capabilities.

"The Waze community and its dedicated team have created a great source of timely road corrections and updates," said Brian McClendon, Vice President of Google's geo-products. "We welcome them to Google and look forward to working with them in our ongoing effort to make a comprehensive, accurate and useful map of the world."

Waze, which is 4-years-old, currently has 47 million users and managed to raise $67 million in funding from companies like Kleiner Perkins Caufield & Byers and Qualcomm Inc.

Just last month, a potential deal between Waze and social networking giant Facebook crumbled when Waze was unwilling to move its engineering team from Israel to the U.S.

Waze CEO Noam Bardin and a small number of Waze employees now operate out of the U.S. headquarters in Palo Alto, California. About 90 other employees stayed in Israel.